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GRANT COOKE: CBR permit denied and new Green Inudstrial Revolution developments impact Benicia

Repost from the Benicia Herald

Grant Cooke: CBR permit denied and new Green Inudstrial Revolution developments impact Benicia

By Grant Cooke, September 22, 2016
P1010301

Grant Cooke

History, or at least precedence, was made Tuesday evening when the Benicia City Council denied Valero a land use permit to bring in volatile Bakken and Tar Sands crude oil from North Dakota and Canada by train.

In what appeared to observers to be a stunning change of heart, the council unanimously agreed with the Planning Commission’s earlier recommendation to reject Valero’s project permit.

With other Northern California cities —and San Luis Obispo—watching carefully, the council’s action set a precedent and reaffirmed a city’s right to regulate local land use and protect the health and safety of its citizens.

The decision may have marked the first significant rejection by a California small town of a fossil fuel company’s proposed major business expansion, and probably notes the diminishing power of the industry in local and state politics.

Interestingly enough, the most prominent rejection by a small town of an oil company’s intended expansion occurred in Denton, Texas. Denton, a quiet and prosperous suburb of Dallas, in the middle of America’s oil patch, banned fracking (a method of shale gas extraction that uses large amounts of water pumped at high pressure into channels drilled into rock to release gas) within the city limits in 2014.

Benicia council’s decision has signaled the city’s first steps away from its past dependence on the fossil fuel industry and its Company Town identity, and marks a tentative step toward a new reality. While local, the decision was significant and reflects the growing momentum of the megatrend known as the Green Industrial Revolution, which is replacing carbon dependent economies with those powered by renewable energy.

Despite the decision, and for years to come Benicia’s tax revenue will still be highly dependent on fossil fuel, and so the developments of the Green Industrial Revolution with its twin drivers of carbon emission reduction and non-carbon energy expansion will have enormous consequences. As the Green Industrial Revolution expands, it will lead to the decline of the fossil fuel industries and correspondingly to the reduction of Benicia’s tax base and carbon-dependent economy.

Here are some other recent events furthering this expansion, and while not local, all have a bearing on Benicia’s future.

The first event happened at the recent G20 meeting in Hangzhou, China. The G20 meeting, which occurs annually, brought together the world’s 20 major economies to discuss international problems and potential policies and solutions. Leaders from the U.S., the European Union, China, Japan and Russia among others, came together for the two-day summit. Next year’s meeting is in Germany.

Woodrow Clark, my writing/business partner, is a member of the B20, a G20 subgroup that focuses on international business and economic issues. As a member of the group that delivered a policy report at the Hangzhou meeting, Woody had a front row view of the historic G20 meeting. Among the policy discussions that the meeting generated, there were some remarkable initiatives. One was that Russia agreed to join the US and China, along with the EU in addressing climate change. I imagine that India will also commit to GHG reductions next year at the G20 meeting in Germany.

This is an expansion of the initial US/China agreement from December’s UN Climate Conference in Paris. It increases the pressure on the fossil fuel industry, which is already beset by plunging oil prices, corrupt and chaotic politics, and furthers the rapid development of non-carbon renewable energy. Its impact on Benicia is indirect, unlike a report from Japan’s Eneco Holdings, LTD, which was part of the G20 Executive Talk Series. (Here’s the link to the vertical edition http://g20executivetalkseries.com )

A second development was also part of the G20 meeting and featured the showcasing of a remarkable chemical breakthrough by Eneco Holdings, LTD, from Japan. The company has the potential to be one of Asia’s largest energy companies with their development of a nano-emulsion technology. It appears that the company has succeeded in making a “complete fusion” between water and oil through the ultra-miniaturization of components at the molecular level. In simple terms, they have succeeded, where all others have failed, in mixing water and oil into a combustible fuel. The result is a mixture that is 70 percent water and stable enough to be a used in internal combustion engines. Further, it is safe and environmentally friendly, emitting about half the carbon, nitrous oxide, and sulfur dioxide released in traditional internal combustion gasoline and diesel combustions. Additionally, when produced in large quantities it will be significantly cheaper than conventional gasoline and diesel.

Originally produced for the Japanese market, Eneco’s Plasma Fusion fuel is being tested and used in China and other parts of Asia. With clean emissions levels, it is ideal for the heavily polluted Asian megacities, and should rapidly grow into a viable alternative to conventional gasoline and diesel. Just imagine how healthy West Oakland’s port area would be without its diesel contaminates? Regardless, this emulsion fuel will be a transitional fuel to hydrogen powered vehicles.

The third development that will have a significant impact on the fossil fuel industries is the continual plunge in the price of solar panels. Last week at a meeting, a solar developer told me that panel prices are now the lowest they have ever been in California, plus they are functioning at their highest levels of efficiency.

Driven by the economic principle of Zero Cost Margins—once the equipment is paid for, the rest of the energy is free—solar and renewable energy are expanding at the rate of Moore’s Law, or doubling about every 18 months. Developing and developed nations are rapidly adopting renewable energy, mostly wind and solar, as a replacement for fossil fuels. In about 20 areas in the world, particularly in Asia, solar and renewable energy are less expensive than fossil fuel. Even Saudi Arabia and United Arab Emirates are developing large solar power generation sites.

Because of Russian aggression and threats of shutting off the natural gas supply, Europe has accelerated its transition from fossil fuel and atomic energy to wind and solar. Germany is a major user of solar energy despite the northern climate, and the United Kingdom is building the world’s biggest offshore wind farm called Hornsea off the Yorkshire coast. Hornsea will be the world’s first offshore wind farm to exceed 1 GW in capacity and will produce enough energy to power well over 1 million homes.

Closer to home, the United States’ Pacific coastline has enough wind and tidal resources to power most of the nation’s needs, and by adding solar to the mix, the U.S. could easily generate enough electricity for centuries to come. Roughly speaking, wind power costs about 2 to 4 cents per kilowatt hour and solar about 5 to 6 cents. PG&E charges around 22 to 24 cents per kilowatt hour, so it’s just a matter of time before on-site or distributive energy overtakes traditional energy delivery.

Further, the carbon industries and the large central utilities have flawed business models that are dependent on ever increasing growth and they cannot adapt to the lower prices available from renewable energy, or the increasing efficiency of vehicles and buildings. This is why Clark and I have written extensively on energy cost deflation and the shrinkage and decline of the carbon industries and the large central utilities.

Finally, we come to Sept. 8’s monumental signing by Gov. Jerry Brown of Senate Bill 32, the legislation that has catapulted California into a leadership role of the international efforts to slow global warming. SB 32 will force the state’s trillion-dollar economy, one of the biggest in the world, into a much smaller carbon footprint. In fact, the legislation requires the state to slash greenhouse gas emissions to 40 percent below 1990 levels by 2030, a much more ambitious target than the previous goal of hitting 1990 levels by 2020. Cutting emissions will affect nearly all aspects of our lives, accelerating the growth of renewable energy, prodding people into buying electric autos, and pushing developers into building denser communities connected to mass transit. (Details: http://www.latimes.com/politics/la-pol-ca-jerry-brown-signs-climate-laws-20160908-snap-story.html ).

One other key element to California’s pursuit of clean air and reduced greenhouse gases is the state’s cap-and-trade program. The program requires the state’s heavy polluters to buy carbon offsets, or credits, to release emissions into the atmosphere, creating an additional operating cost for the oil and utility industries.

SB 32 and the expansion of cap-and-trade will have dramatic impacts on the state’s fossil fuel industries. Likely many of us are driving our last conventional gasoline powered vehicle, with the next one probably powered by electricity or hydrogen. It’s not hard to predict that since the Bay Area’s refineries are the heaviest of the area’s polluters, that the combination of reduced revenue from shrinking demand and increased costs of production and operation will eventually lead to refinery closings.

The fossil fuel industries won’t give up easily, there’s trillions of dollars at stake. Many of the industries leaders and the more prescient investment bankers know that the fossil fuel era has peaked and started to decline, which is why Russia overran the Crimea and is poised to take over Ukraine. Which is why the U.S. and Canada are being besieged by the fossil fuel interests to ignore or eliminate environmental and safety protections that hamper production.

Which is why Valero pushed so hard to transport volatile Bakken crude by rail cars through the densely populated Sacramento corridor and cram the trains into Benicia and a refinery that is not designed or equipped to deal with them. The industries, the refineries and all connected to the fossil fuel era, know that the incredibly lucrative period when oil was king and black gold flowed from the sand is coming to an end.

Bringing this back to Benicia, we see a city that is dependent on Valero for tax revenue and its governing process glimpsing a new reality. Small cities like Benicia that have been so dependent on the fossil fuel industries for so much and for so long, struggle to change. Other cities like those in the deindustrialized Midwest that have suffered sudden collapses of their major companies and tax bases have had to reinvent their economic drivers or just blow away. But it’s hard for a city like Benicia with its apparent prosperity and ease of living to understand that its fossil fuel base is in decline and that the future is elsewhere.

Grant Cooke is a longtime Benicia resident and CEO of Sustainable Energy Associates. He is also an author and has written several books on the Green Industrial Revolution. His newest is “Smart Green Cities” by Routledge.
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Breaking: Emergency Calls Needed to Protect Oil Export Ban

Action Alert from the Center for Biological Diversity

TELL THE SENATE AND PRESIDENT TO PROTECT THE OIL EXPORT BAN

Fracking illustration

Fracking illustration courtesy Flickr/Jared Rodriguez, Truthout.

America’s decades-old crude oil export ban is under urgent threat of repeal through backroom dealing and an imminent vote on a congressional spending bill. The ban is a critical safeguard against climate change and the damages and risks of fracking.

Lifting the ban would massively boost oil production at a time when the science demands that we must leave at least 80 percent of remaining fossil fuels in the ground. The combustion of the additional oil that would be produced is estimated to generate more than515 million metric tons of carbon pollution per year — the equivalent annual greenhouse gas emissions of 135 coal-fired power plants or more than 100 million passenger cars.

If this horrendous bill passes, communities across America will face more pollution, illness and disruption from drilling and fracking. We can’t afford to lift the crude oil export ban just to contribute to Big Oil’s windfall profits.

Phone calls to your senators and the White House are urgently needed. Here are some talking points. Type in your ZIP code below to get your senators’ numbers, then let us know you called. 

For senators:

Hi, my name is ______, and I live in ______. I’m calling to urge you to vote NO on the omnibus bill that repeals the crude oil export ban. Lifting the ban would increase oil production and damage from fracking and other dangerous drilling while undercutting progress fighting climate change. It will increase Big Oil’s profits at our expense. No deal could justify lifting the 40-year-old crude oil export ban.

Please — vote against any bill that lifts the crude oil export ban or has other sneak attacks on our environment and democracy.

Can you tell me how Senator X plans to vote? Thank you.

For the White House: 

Hi, my name is ______, and I live in ______. I’m calling to urge you to veto the omnibus bill that repeals the crude oil export ban. Lifting the ban would increase oil production and damage from fracking and other dangerous drilling while undercutting progress fighting climate change. It will increase Big Oil’s profits at our expense. No deal could justify lifting the 40-year-old crude oil export ban.

Please veto any bill that lifts the crude oil export ban or has other sneak attacks on our environment and democracy.

Contact information for your Senators and the White House: Click here to go to the Centers for Biological Diversity page, then scroll to the bottom to look up and use your zip code for contact info.

Please take action by Jan. 31, 2016.

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California shuts dozens of oil wells to stop wastewater injection

Repost from the San Francisco Chronicle

State shuts 33 wells injecting oil wastewater into aquifers

By David R. Baker, October 16, 2015
A person walks past pump jacks operating at the Kern River Oil Field in Bakersfield, Calif. (AP Photo/Jae C. Hong, File) Photo: Jae C. Hong, Associated Press

A person walks past pump jacks operating at the Kern River Oil Field in Bakersfield, Calif. (AP Photo/Jae C. Hong, File)

California regulators on Thursday closed 33 oil company wells that had injected wastewater into potentially drinkable aquifers protected by federal law.

The new closures bring to 56 the number of oil-field wastewater injection wells shut down by the state after officials realized they were pumping oil-tainted water into aquifers that potentially could be used for drinking or irrigation.

All but two of the latest closures are in Kern County, in California’s drought-stricken Central Valley. One lies in Ventura County, another in northern Los Angeles County. Officials with California’s Division of Oil, Gas and Geothermal Resources spent Friday verifying that they had, in fact, closed. Of the 33, only 21 had been actively injecting wastewater before Thursday.

“This is part of our ongoing effort to ensure that California’s groundwater resources are protected as oil and gas production take place,” said Steven Bohlen, the division’s supervisor.

California’s oil fields contain large amounts of salty water that comes to the surface mixed with the oil. It must be separated from the petroleum and disposed of, often by injecting it back underground. Much of the water is pumped back into the same geologic formation it came from. But enough left-over water remains that companies must find other places to put it.

Fears of contamination

The division, part of California’s Department of Conservation, for years issued oil companies permits to inject their left-over water into aquifers that were supposed to be off-limits, protected by the federal Safe Drinking Water Act.

The problem, detailed in a Chronicle investigation earlier this year, raised fears of water contamination in a state struggling through a historic, four-year drought.

So far, however, no drinking water supplies have been found to be tainted by the injections.

Still, some environmentalists expressed outrage that so few wells had been closed.

The division has identified 178 wells that were injecting into legally protected aquifers with relatively high water quality, defined as those with a maximum of 3,000 parts per million of total dissolved solids. More than 2,000 other wells inject into aquifers that would be harder to use for drinking water, either because they are too salty or because they also contain oil.

“This is too little, too late to protect our water,” said Kassie Siegel, director of the Climate Law Institute at the Center for Biological Diversity. “With each passing day the oil industry is polluting more and more of our precious water.”

The division reported Friday, however, that not all 178 wells required closure. Some had already been shut down by their operators, while others had been converted into wells for extracting oil — not dumping wastewater.

An oil industry trade group noted that all of the wells closed Thursday had received state permits, even if the state now acknowledges that those permits should never have been issued.

“Both regulators and producers are committed to protecting underground water supplies, and today’s announcement reinforces the seriousness of that commitment,” said Catherine Reheis-Boyd, president of the Western States Petroleum Association.

Safeguarding water supplies

“California’s oil and natural gas producers are committed to operating their wells in a manner that continues to safeguard public water supplies,” she said.

Revelations that the division allowed injections into relatively fresh groundwater supplies touched off a political firestorm, triggered lawsuits, and led Bohlen to launch a reorganization of his staff.

More well closures will likely follow. Under regulations adopted this year, wells injecting into aquifers with water quality between 3,000 and 10,000 total dissolved solids must cease injections by Feb. 15, 2017, unless granted an exemption from the federal Environmental Protection Agency.

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